🛡 How big should my emergency fund be?

An unexpected shock without savings often turns into credit card debt that is harder to pay off, per CFPB. This calculator helps you determine exactly how big your emergency fund should be and maps out a concrete timeline to reach that dollar target. You will learn what it takes to build a buffer for car repairs, medical bills, or a stretch of lost income.

The amount you need depends on your situation. CFPB advises thinking about the most common unexpected expenses you have had in the past and what they cost.

A common planner rule of thumb layered on top of this guidance suggests keeping 3 months of expenses for dual stable incomes, or 6 months if you have freelance or commission income.

CFPB highlights making saving automatic, like recurring checking-to-savings transfers, as one of the easiest ways to build your fund. They also recommend saving all or part of a tax refund, which is often the largest check many Americans receive all year.

This calculator simplifies away interest earned while saving, irregular income months, and expense inflation. Keep this fund safe and accessible in a dedicated bank or credit union account.

For further related reading, check out:

• An essential guide to building an emergency fund | Consumer Financial Protection Bureau